Problem 8.27 Cash Collections; Cash Disbursements; Budgeted Balance Sheet [LO8-2, LO8-3, LO8-4, LO8-10] Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30 th. The following information is available Budgeting Assumptions a. 60% of sales are cash sales and 40% of sales are ciedit sales. Iwenty percent of all credit sales are colected in the month of sale and the remaining 80 s are collected in the month subsequent to the sale b. Budgeted males for fuly are 5153,000 c. 10\% of merchandise inventory purchases are paid in cash at the time of the parchase. The remaining 90of of purchases are credit purchases All purchases on credit are paid in the manth subsequent to the puichase. The accounts payable at March 31 wilf be. poid in April a. Each month's ending merchandise inventory should equal $10,000 plus sosi of the next months cast of goods sold e. Depreciation expense is $1,050 per month All other seding and adininistetive expenses ate paic in ful in the month the expense is incurred Required: 1. Calculate the expected cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30th. (Hint You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30 th balance sheet) Complete this question by entering your answers in the tabs below. Calculate the expected cash collections for April, May, and June